Funding facility will drive exploration and technical studies. Pic: Getty
Put that in your Lachlan Fold Belt: Thomson pockets $5m to accelerate exploration and technical analysis
Mining
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Thomson has secured an equity facility of up to $5m to accelerate exploration and technical studies at its New England Fold Belt Hub and Spoke portfolio and its Lachlan Fold Belt targets.
The capital is available in tranches to the company for a 12 month period under an equity funding facility agreement with Securities Vault to meet additional funding requirements as needed.
It provides a greater degree of flexibility for its funding requirements as Thomson Resources (ASX:TMZ) is free to initiate other capital raisings without drawing down on the Securities Vault facility.
For each tranche of shares sold by the company under the facility, it will receive an amount equivalent to the gross proceeds derived by Securities Vault, less a 6% facility commission.
It’s like an ATM
“The facility is the same as “At The Market” or “ATM” facilities widely used in the USA by many companies small and big, such as Denison Mines Corp and Hecla Mining Company,” executive chairman David Williams said.
“The Facility will allow us to access capital on an “as needs basis,” so we can periodically fund our initiatives in a structured and value accretive manner and only when we call on it.
“This structure also provides a potentially less dilutive mechanism of accessing capital as we utilise drawdown to fund specific value accretive initiatives and drive shareholder value.”
He added that with a number of resource estimations being progressed across its New England Fold Belt Hub and Spoke project portfolio and drilling about to start in New England and the Lachlan Fold Belt, the funding will allow Thomson to accelerate its work to build a substantial silver-gold-base metal resource hub with centralised processing functionality.
New England calling
The New England Fold Belt Hub and Spoke strategy is aimed at consolidating a 100 million ounce silver equivalent resource that will be fed into a central processing facility.
It encompasses the Texas (Twin Hills and Mt Gunyan), Silver Spur, Webbs and Conrad projects.
Resource estimates are currently in progress for Twin Hills, Silver Spur and Mt Gunyan.
This article was developed in collaboration with Thomson Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
